Issuing bonds and paying interest est expense, $60,000 ing bonds; paying and accruing interest est expense,...

 

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Issuing bonds and paying interest est expense, $60,000 ing bonds; paying and accruing interest est expense, $150,000 Issuing bonds; paying and accruing interest rest expense, $125,000 Issuing bonds between interest dates Exercise 15-3 Sea-Link Distributors Inc. issues $2,000,000 of 6 percent, semi-annual, 20-year bonds dated April 30. Record (a) the issuance of bonds at par on April 30 and (b) the next semi-annual interest payment on October 31. ssuing bonds, paying and accruing interest, and mortizing a discount by the straight-line method Interest expense, 590,000 Exercise 15-4 On February 1, Lasquiti Logistics Inc. issues 20-year, 3 percent bonds payable with a matu. rity value of $10,000,000. The bonds sell at par and pay interest on January 31 and July 31, Record (a) the issuance of the bonds on February 1, (b) the semi-annual interest payment on July 31, and (c) the interest accrual on December 31. Issuing bonds, paying and ng interest, and amortizing remium by the straight-line method Interest expense, $59,250 Exercise 15-5 Saturna Corp. issues 20-year, 6 percent bonds with a maturity value of $5,000,000 on April 30. The bonds sell at par and pay interest on March 31 and September 30. Record (a) the issuance of the bonds on April 30, (b) the payment of interest on September 30, and (c) the accrual of interest on December 31. Exercise 15-6 Refer to the data for Saturna Corp. in Exercise 15-5. If Saturna Corp. issued the bonds on June 30, how much cash would Saturna Corp. receive upon issuance of the bonds? Exercise 15-7 On April 1, Avalon Inc. issued 20-year, 3.5 percent bonds with a maturity value of $5,000,000. The bonds sell at 98.00 and pay interest on September 30 and March 31. Avalon Inc. amor- tizes bond discounts by the straight-line method. Record (a) the issuance of the bonds on April 1, (b) the semi-annual interest payment on September 30, and (c) the interest accrual on December 31. Exercise 15-8 Lafayette Corp. issues $1,500,000 of 20-year, 8 percent bonds on February 1, 2017. The bonds sell at 102.00 and pay interest on January 31 and July 31. Assume Lafayette Corp. amor- tizes the premium by the straight-line method. Record (a) the issuance of the bonds on February 1, (b) the payment of interest on July 31, (c) the accrual of interest on December 31, and (d) the payment of interest on January 31, 2018. Issuing bonds and paying interest est expense, $60,000 ing bonds; paying and accruing interest est expense, $150,000 Issuing bonds; paying and accruing interest rest expense, $125,000 Issuing bonds between interest dates Exercise 15-3 Sea-Link Distributors Inc. issues $2,000,000 of 6 percent, semi-annual, 20-year bonds dated April 30. Record (a) the issuance of bonds at par on April 30 and (b) the next semi-annual interest payment on October 31. ssuing bonds, paying and accruing interest, and mortizing a discount by the straight-line method Interest expense, 590,000 Exercise 15-4 On February 1, Lasquiti Logistics Inc. issues 20-year, 3 percent bonds payable with a matu. rity value of $10,000,000. The bonds sell at par and pay interest on January 31 and July 31, Record (a) the issuance of the bonds on February 1, (b) the semi-annual interest payment on July 31, and (c) the interest accrual on December 31. Issuing bonds, paying and ng interest, and amortizing remium by the straight-line method Interest expense, $59,250 Exercise 15-5 Saturna Corp. issues 20-year, 6 percent bonds with a maturity value of $5,000,000 on April 30. The bonds sell at par and pay interest on March 31 and September 30. Record (a) the issuance of the bonds on April 30, (b) the payment of interest on September 30, and (c) the accrual of interest on December 31. Exercise 15-6 Refer to the data for Saturna Corp. in Exercise 15-5. If Saturna Corp. issued the bonds on June 30, how much cash would Saturna Corp. receive upon issuance of the bonds? Exercise 15-7 On April 1, Avalon Inc. issued 20-year, 3.5 percent bonds with a maturity value of $5,000,000. The bonds sell at 98.00 and pay interest on September 30 and March 31. Avalon Inc. amor- tizes bond discounts by the straight-line method. Record (a) the issuance of the bonds on April 1, (b) the semi-annual interest payment on September 30, and (c) the interest accrual on December 31. Exercise 15-8 Lafayette Corp. issues $1,500,000 of 20-year, 8 percent bonds on February 1, 2017. The bonds sell at 102.00 and pay interest on January 31 and July 31. Assume Lafayette Corp. amor- tizes the premium by the straight-line method. Record (a) the issuance of the bonds on February 1, (b) the payment of interest on July 31, (c) the accrual of interest on December 31, and (d) the payment of interest on January 31, 2018.

Answer rating: 100% (QA)

Exercise 153 a Debit Credit Cash 2000000 Bonds Payable 2000000 b Debit Credit Interest Expense 60000 ... View the full answer